Description of Service (3)

Rate % (4)

Condition (5)

(i) Transport of passengers, with or without accompanied belongings, by rail in first class or air conditioned coach.

2.5

Provided that credit of input tax charged in respect of goods used in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service.

(ii) Transport of passengers, with or without accompanied belongings by-

(a) air conditioned contract carriage other than motorcab;

(b) air conditioned stage carriage;

(c) radio taxi.

Explanation.-

(a) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(b) “stage carriage” has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) ;

(c) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS).

2.5

Provided that credit of input tax charged on goods [1][and] services used in supplying the service has not been taken. [Please refer to Explanation no. (iv)]

(iii) Transport of passengers, with or without accompanied belongings, by air in economy class.

2.5

Provided that credit of input tax charged on goods used in supplying the service has not been taken. [Please refer to Explanation no.(iv)]

 (iv) Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport, as notified by the Ministry of Civil Aviation.

2.5

Provided that credit of input tax charged on goods used in supplying the service has not been taken

[Please refer to Explanation no. (iv)]

[2][(iva) Transportation of passengers, with or without accompanied baggage, by air, by non-scheduled air transport service or charter operations, engaged by specified organisations in respect of religious pilgrimage facilitated by the Government of India, under bilateral arrangement.

2.5

Provided that credit of input tax charged on goods used in supplying the service has not been taken

[Please refer to clause (iv) of paragraph 4 relating to Explanation]

(v) Transport of passengers by air, with or without accompanied belongings, in other than economy class.

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[3][(vi) Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient.

2.5

Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle), has not been taken.

[Please refer to Explanation no. (iv)]

[4][Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.

Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs. 1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs. 800. ‘C’ charges ‘B’ central tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ central tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.]

OR

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[5][(via) Transport of passengers, with or without accompanied belongings, by ropeways.

2.5

The credit of input tax charged on goods used in supplying the service has not been taken.

[Please refer to Explanation no. (iv)]

[6][(vii) Passenger transport services other than (i), (ii), (iii), (iv), (iva), (v), (vi) and (via) above.

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